Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,040 |
| 1 Bedroom | $2,160 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,440 | $335,095 | 0.73% | D |
| 3BR | $3,140 | $403,533 | 0.78% | D |
| 4BR | $3,580 | $570,602 | 0.63% | D |
| 5BR | $4,153 | $746,888 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 60174 in Saint Charles, IL, under the Section 8 program are significant. Tenant turnover poses a notable risk, as the market rent stands at $1,926, whereas the Fair Market Rent (FMR) for fiscal year 2024 is pegged at $1,990. This suggests that landlords might face challenges in attracting tenants willing to pay the higher market rates required outside of the Section 8 program.
Vacancy exposure is another concern, with an average of only 10 days on the market (DOM). This quick turnover rate can be misleading, as it does not necessarily indicate a robust rental market but rather could reflect a high volume of short-term tenancies, leading to frequent vacancies and associated costs.
Deferred maintenance is a significant risk factor given the typical home value of $424,799 and the median income of $104,534. The disparity between home values and median incomes suggests that many property owners may struggle to keep up with necessary repairs and improvements, potentially resulting in higher maintenance costs for landlords who take over such properties.
Despite these risks, the high renter share of 30.9% in ZIP 60174 provides a counterbalance. A large proportion of renters typically translates into greater demand for housing vouchers, which can stabilize occupancy and reduce vacancy periods. This high demand for Section 8 vouchers can mitigate some of the financial uncertainties faced by landlords.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.